EUROPEAN UNION MRV REGULATION Guidance for ships over 5000GT ...

EUROPEAN UNION MRV REGULATION

Guidance for ships over 5000GT which carry passengers or cargo to, from or

between EU/EEA ports, regardless of Flag

Executive Summary

The European MRV Regulation entered into force in 2015, the first reporting period

starts 1 January 2018. Companies operating ships of over 5000GT which carry

passengers or cargo for commercial purposes to or from European ports, regardless

of the flag they fly, must submit their monitoring plans to an accredited verifier by 31

August 2017. This guidance is intended to raise awareness of the requirements of

the Regulation and to remind members of some of the key requirements. The

guidance includes a link to the European Commission website where a range of

further guidance and links to the regulatory documents and FAQs can be found.

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Section

Introduction

Timeline and key dates

Scope

Monitoring and reporting

Distance travelled, cargo and transport work

Monitoring plan

Emissions report

Verification and verifiers

Document of compliance

Penalties

Publication of data

MRV Regulation and IMO Data Collection Scheme (DCS)

Further reading and resources

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Introduction

The European Union (EU) MRV Regulation (Regulation (EU) 2015/757 on the

monitoring, reporting and verification of carbon dioxide emissions from maritime

transport, and amending Directive 2009/16/EC) entered into force on 1 July 2015.

The regulation applies to any ships within its defined scope regardless of the Flag

they fly. All companies with ships carrying passengers or cargo to/from European

ports must comply with the MRV Regulation and are required to submit their

monitoring plans to an accredited verifier by 31 August 2017.

The MRV Regulation provides requirements for the monitoring, reporting and

verification of carbon dioxide (CO2) from ships arriving at, within or departing from

EU ports and/or European Economic Area ports. The MRV Regulation forms part of

Europe¡¯s efforts to combat greenhouse gas emissions and applies to ships above

5000GT, regardless of flag. This guidance is intended to provide information to

members on the scope and application of the MRV Regulation.

The following delegated and implementing regulations have been enacted to support

the MRV Regulation:

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Implementing Regulation (EU) 2016/1927 on templates for monitoring plan,

emissions reports and document of compliance

Implementing Regulation (EU) 2016/1928 on determination of cargo carried

Delegated Regulation (EU) 2016/2071 on methods for monitoring carbon

dioxide emissions

Delegated Regulation (EU) 2016/2072 on accreditation of verifiers

Although the MRV Regulation and the IMO data collection scheme (DCS)

established under Regulation 22A of MARPOL VI are both intended to capture fuel

use data in order to quantify carbon emissions from shipping they are significantly

different, with the unfortunate result that ship operators will have to manage two

separate reporting schemes for the fuel they use.

This guidance is intended to raise awareness, section 13 provides a link to a

European Commission website where a wealth of further guidance and resources

can be found. Members are encouraged to make use of these resources and to

familiarise themselves with the guidance produced by the European Commission.

Much of the guidance provided by the European Commission was developed by the

European Sustainable Shipping Forum (ESSF) sub-group on shipping MRV.

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Timeline and key dates

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31 August 2017 - monitoring plans must be assessed by an accredited verifier

1 January 2018 to 31 December 2018 - first monitoring period

30 April 2019 - emissions reports for each ship must be verified by an accredit

verifier

30 June of each year after the reporting period - the Document of Compliance

issued by the verifier is to be on-board

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The most urgent deadline is 31 August 2017, all members are advised to bring to the

attention of member companies the importance of submitting their monitoring plans

to accredited verifiers by this date for their ships which are or will be covered by the

scope of the MRV regulation as detailed in section 3 below.

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Scope

The MRV Regulation applies to ships above 5 000 gross tonnage. Ships will have to

record the fuel used on voyages:

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from their last port of call to a port of call under the jurisdiction of a Member

State;

from a port of call under the jurisdiction of a Member State to their next port of

call; and

within ports of call under the jurisdiction of a Member State.

Ports of call under the jurisdiction of an EU member state means ports within

member states, plus Iceland and Norway (except Svarbald). Overseas and

dependent territories of EU member states are generally excluded, ports within the

following territories are not considered to be Ports of call under the jurisdiction of an

EU member:

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Greenland and the Faroe Islands, French Polynesia, Mayotte, New

Caledonia, Saint-Barth¨¦lemy, Saint Pierre and Miquelon, Wallis and Futuna,

Aruba, Bonaire, Saba, Sint Eustatius, Cura?ao, Sint Maarten, Anguilla,

Bermuda, British Antarctic Territory, British Indian Ocean Territory, British

Virgin Islands, Cayman Islands, Falkland Islands, Bailiwick of Guernsey, Isle

of Man, Jersey, Montserrat, Pitcairn, Henderson, Ducie and Oeno Islands,

Saint Helena, Ascension and Tristan da Cunha, South Georgia and the South

Sandwich Islands, Turks and Caico Islands, Akrotiri and Dhekelia.

The following ports are, however, considered to be Ports of call under the jurisdiction

of an EU member:

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A?ores, Madeira, Canarias, Guadeloupe, French Guyana, Martinique,

Mayotte, Saint Martin and Reunion.

A voyage starts at berth and ends at berth. Manoeuvring under pilotage and/or

anchoring are considered to form part of the voyage, however, the time spent at sea

is based on port departure and arrival data and excludes anchoring.

A port of call is a port where a ship loads or unloads cargo, or embarks or

disembarks passengers. If the ship calls into a port for the sole purposes of

refuelling, obtaining supplies, relieving the crew, dry-docking or repairs, because it is

in need of assistance or in distress then it is not considered to be a port of call for the

purpose of the MRV Regulation. Ship-to-ship transfers carried out outside ports, and

stops for the sole purpose of taking shelter from adverse weather or rendered

necessary by search and rescue activities are also excluded from the scope of the

MRV Regulation.

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The MRV Regulation is not applicable to voyages and activities for purposes other

than transporting cargo or passengers for commercial purposes, such as dredging,

ice-breaking, pipe laying and offshore installation and construction.

The MRV regulation does not apply to warships, naval auxiliaries, fish-catching or

fish-processing ships, wooden ships of a primitive build, ships not propelled by

mechanical means, or government ships used for non-commercial purposes.

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Monitoring & Reporting

Companies have to monitor and report fuel use for all voyages within the scope of

the MRV Regulation from 1 January 2018. The company is responsible for

developing its monitoring plan. The MRV Regulation defines the company as:

¡®company¡¯ means the shipowner or any other organisation or person, such as the

manager or the bareboat charterer, which has assumed the responsibility for the

operation of the ship from the shipowner

This is generally similar to the definition of company provided in 1.1.2 of the ISM

Code:

Company means the Owner of the ship or any other organization or person such as

the Manager, or the bareboat Charterer, who has assumed the responsibility for

operation of the ship from the Shipowner and who on assuming such responsibility

has agreed to take over all the duties and responsibility imposed by the Code.

Companies can report on a per voyage basis, or, if all of a ships voyages during the

reporting period are between ports under the jurisdiction of a member state and the

ship performs more than 300 voyages during the reporting period then they can

report annually. Monitoring is to include emissions. Companies are to avoid data

gaps within the reporting period and ensure that data is accurate, this includes

identifying and reporting any inaccuracies in the data. Data should be transparent

and allow an external verifier to reproduce the CO2 emissions figure.

If there is a change of company for a ship during the reporting period (e.g. a change

of ownership) then the new company will be responsible for making sure that the

ship complies with the requirements of the MRV Regulation for the entire reporting

period.

The MRV Regulation includes concepts which may not be familiar to companies and

seafarers, at least in the way they are used in the MRV Regulation. One of these

concepts is ¡°uncertainty¡±, the regulation defines uncertainty as:

¡®uncertainty¡¯ means a parameter, associated with the result of the determination of a

quantity, that characterises the dispersion of the values that could reasonably be

attributed to the particular quantity, including the effects of systematic as well as of

random factors, expressed as a percentage, and describes a confidence interval

around the mean value comprising 95 % of inferred values taking into account any

asymmetry of the distribution of values

Basically, uncertainty is merely a recognition that a measured value if measuring a

parameter such as fuel used is unlikely to be 100% accurate. Especially when

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multiple means of measurement and calculation are used (e.g. Fuel flow meters,

density determination, tank levels) each stage will have some degree of uncertainty.

The overall uncertainty is derived from the product of each of these uncertainties and

can be calculated as the square root of the summation of the square of each

uncertainty contributing to the total. Alternatively, the guidance produced by the

ESSF proposes an overall maximum uncertainty level of +/-10% for methods A, B &

C for fuel monitoring (see Sections 6 & 13).

Verifiers are to apply a standard of ¡°reasonable assurance¡± when verifying emissions

reports. Reasonable assurance sounds rather vague and ill-defined, but in this

context it is used in the way the phrase is used in auditing. In auditing, assurance

may be either reasonable or limited. To provide reasonable assurance an auditor

considers sampled evidence and source data. To provide limited assurance an

auditor will consider aggregated data. In the case of MRV, source data includes

BDNs, so if part of the monitoring plan the BDNs would need to be sampled in order

to provide reasonable assurance. Far from being a soft process, verifying data to

provide reasonable assurance applies a rigorous standard.

Another term used in the MRV Regulation which may not be familiar is ¡°material

misstatement¡±. Misstatement effectively means that a report or statement does not

provide true and fair view of whatever is under consideration. Material misstatement

in this context means that reported data deviates by more than 5% from the correct

calculation.

4.1.

Monitoring & Reporting

Companies are to monitor:

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4.2.

port of departure and port of arrival

the date and hour of departure and arrival;

quantity of fuel used, each type of fuel used and emission factor for each type

of fuel;

CO2 emitted;

distance travelled;

time spent at sea;

cargo carried;

transport work;

information relating to the ship's ice class and to navigation through ice, where

applicable.

Annual Reporting

Companies reporting on an annual basis are to monitor:

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Quantity of fuel used, each type of fuel used and emission factor for each type

of fuel;

total aggregated CO2 emitted within the scope of this Regulation;

aggregated CO2 emissions from all voyages between ports under a Member

State's jurisdiction;

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